Question

A savings account accrues interest at a rate of 3.0% yearly. If someone opens an account with $2,500, how much money would the account have after 5 years?

Answer 1

$3\%=\frac{3}{100}=0,03\\\\ First\ year:2500+2500*0,03=2500+75=2575\\\\Second\ year:\ 2575+2575*0,03=2575+77,25=2652,25\\\\Third\ year:\ \ 2652,25+2652,25*0,03=2652,25+79,5675=\\\\2731,8175\\\\ Fourth\ year: 2731,8175+2731,8175*0,03=2731,8175+81,954525\\\\=2813,772025\\\\Fifth\ year:\ 2813,772025+2813,772025*0,03=\\\\2813,772025+84,41316075=2898,18518575$